In the Budget on 11 March 2020, the Chancellor announced a variety of measures to provide support for public services, individuals and businesses to ensure the impact of COVID-19 is minimised.
Further details of the Coronavirus Business Interruption Loan Scheme (CBILS), delivered by the British Business Bank have been announced, detailing beneficial terms to businesses applying for new facilities, to ensure the continued provision of finance to UK businesses during the coronavirus outbreak.
The information provided by the British Business Bank includes confirmation that the CBILS will be available to Sporting Membership Organisations, which will be welcome news to the many sports organisations struggling to deal with the unprecedented effects of COVID-19. The maximum value under the CBILS scheme will be £5m.
It is expected that the new scheme will be available to businesses and sports membership organisations, meeting certain requirements, from week commencing 23 March 2020.
Under the scheme, the Government will cover the first six months of interest payments, to enable businesses to benefit from initial repayments at a lower level.
However, the business will remain liable for repayments of the capital borrowed. CBILS provides the loan provider with a government-backed guarantee on the outstanding balance, potentially enabling a positive credit decision from a lender, where it would otherwise have been refused.
What are the eligibility criteria for the Coronavirus Business Interuption Loan Fund?
To be eligible for support the small business must:
• Be UK based, with turnover of no more than £45 million per annum
• Operate within an eligible industrial sector (a small number of industrial sectors are not eligible for support or subject to limitations – see below)
• Be able to confirm that they have not received de minimis State aid beyond €200,000 equivalent over the current and previous two fiscal years
• Be unable to meet a lender’s normal lending requirements for a fully commercial loan or other facility, but would be considered viable in the longer-term
It’s worth bearing in mind that this is a fast-moving situation and the eligibility criteria and exact details of the scheme could change, as outlined in the British Business Bank’s own disclaimer below.
Disclaimer: We are in the process of defining and agreeing the scheme’s details, specifications and eligibility and therefore information is subject to change. We will be updating our webpages to reflect any changes to CBILS as and when they are published.
For more information on how sports membership clubs can access the Coronavirus Business Interuption Loan Scheme, please contact our team on 01772 258321.